#EU New Regulations Boost Euro Stablecoin Development#
Hot Topic Overview
Overview
The MiCA regulation, which came into effect on December 30th in the EU, could potentially drive the development of euro-denominated stablecoins. JPMorgan believes that MiCA's requirement for stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses will encourage compliant stablecoins to become trading pairs in regulated markets, boosting the growth of compliant stablecoins like Circle's EURC. On the other hand, non-compliant stablecoins like Tether face challenges, as evidenced by Tether's discontinuation of its EURT stablecoin and its delisting from multiple EU exchanges. Despite this, Tether remains a "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers like Quantoz Payments indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA requires only compliant stablecoins to be used as trading pairs in regulated markets, which will prompt EU exchanges to adjust their offerings. The regulation mandates stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. This has posed challenges for non-compliant stablecoins like Tether, leading to the discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. Despite this, Tether remains the "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU. The implementation of MiCA will drive the development of euro-denominated stablecoins and create new opportunities for compliant stablecoin issuers.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses
MiCA regulation may lead to compliant stablecoins (such as Circle's EURC) gaining an advantage, while non-compliant stablecoins (such as Tether's EURT) face challenges
Tether and other stablecoin issuers may maintain their presence in the EU by investing in stablecoin issuers that meet MiCA standards